The Heat Is On For WTCG: Afternoon Momentum Coming In
Ok here’s the scenario: WTCG has gotten off to a slower start than I had originally thought especially after having seen the short report from the last month. But that’s not necessarily a bad thing because there hasn’t really been a whole lot of downward pressure. In fact, by my count I only see two sell orders all day.
What does a lack in downward pressure have to do with today’s pick? In my opinion this suggests that those holding aren’t willing to let shares go at these prices and more importantly, alludes to the idea that they want to see WTCG much higher…Me Too! Remember it was less than 2 weeks ago (Nov 6) when WTCG hit highs of .0014 on very light volume and I think that today could have all the potential in the world to do it again. A move back to those levels would mean gains of more than 200PCT! Are you seeing the same thing that I am with this?!
RSI is as far down as you can pretty much get. The standout for this indicator is that it is beginning to move out of “oversold” territory and Friday’s close at .0004 solidified the first signs of a rebound in my opinion.
Over the last 6 trading days, WTCG has closed red during an extended period of selling. Once again Friday’s trading resulted in this stock seeing its first non-red day and another signal of an impending bounce
In line with the RSI indicator is the Accumulation Distribution line to show buying and selling trends. On Thursday it hit Bottom suggesting strong selling BUT on Friday, the line began to reverse showing that there could be a new wave of buying coming into the market for WTCG. This paired with the other indicators above shows me that there could be a set-up for a bottom bounce heading into this morning.
The “Short Squeeze Situation” With WTCG
Since October 17th there have been a total of nearly 100M shares in short volume in the market for WTCG according to OTCShortReport.com. Right now for shorts to keep making money, they need to let the price go up in order to short it back down but the issue that many of them face right now is that most of them have shorted this stock right around the current price. In fact over the last 6 trading days, more than 67% (or a mere $26k) of the 100M in short volume has come in, so the opportunity for a squeeze is imminent in my opinion.
Therefore, if WTCG sees an increased amount of early buying in the market, then these short sellers could be in the uncomfortable position to have to cover. What that means is that they will need to start buying at much higher prices in order to have enough shares to give back to the brokers that they’ve borrowed shares from. That could offer a huge opportunity to profit as the stock price could explode and in my opinion that may be just the right recipe for day traders to make money on bloated shorts that aren’t anticipating a squeeze.